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The president of the company examines your figures and says, There's something strange here. Our fixed expenses haven't changed and you show greater total contribution
The president of the company examines your figures and says, "There's something strange here. Our fixed expenses haven't changed and
you show greater total contribution margin if we add the new product, but you also show our breakeven point going up With greater
contribution margin, the breakeven point should go down, not up You've made a mistake somewhere." Explain to the president what
happened.
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